On December 1, 20X1, Sycamore Company acquired a 90-day speculative forward contract to sell €120,000 at a forward rate of €1 = $0.58. The rates are as follows:

Requireda. Prepare a schedule showing the effects of this speculation on 20X1 income before income taxes.b. Prepare a schedule showing the effects of this speculation on 20X2 income before incometaxes.